Working for Families

In 2004 the New Zealand Labour government introduced the Working for Families package as part of the 2004 budget. The package, which effectively commenced operating on 1 April 2005, had three primary aims: to make work pay; to ensure income adequacy; and to support people "into work".

The main component resembles the United Kingdom Working tax credit.

Both the New Zealand Ministry of Social Development and Inland Revenue have involvement in jointly delivering the package.

The scheme pays "Working for Families Tax credits" (formerly known as Family Assistance) to families with dependent children to help with the cost of raising a family. Dependent children are defined as aged 18 or under who are not in full-time employment. The Working for Family tax credits include four types of payments:

The Working for Families package also included additional help with childcare and accommodation, with increases in amounts of the existing Accommodation Supplement and the existing Childcare Assistance.

Formerly known as Family Support, the Family Tax Credit gets paid to families with dependent children aged 18 or younger. There is no employment requirement to qualify for the Family Tax Credit.

The amount paid depends on:

The maximum amount of family tax credit increases with the age and number of children. An eldest child garners a higher amount.

For an eldest dependent child aged 16 to 18, the maximum tax credit increases by $13 a week. For dependent children (other than the eldest) aged 13 to 15, the maximum tax credit increases by $8 a week. For dependent children (other than the eldest) aged 16 to 18, the maximum tax credit increases by $29 a week.

Formerly known as In-work Payment, the In-Work Tax Credit replaced the Child tax credit from 1 April 2006. It is paid to families with dependent children (aged 18 or younger) who work the required number of hours each week.

A couple must work at least 30 hours a week to qualify; a sole parent at least 20 hours a week. Families do not qualify if they receive a main form of state assistance through social welfare.

...
Wikipedia